Denver City Council has approved millions for homelessness over what mayor originally budgeted

Solving homelessness isn’t easy. Finding out exactly how much it costs to try and do it isn’t easy either.

As Denver struggles to find funding for the migrant crisis, Mayor Mike Johnston's administration continues to expand his top priority: His initiative to end homelessness.

Very little information has been released by the City of Denver and the mayor's office about how much money the mayor's homelessness initiatives actually cost. Using months of city council agendas and documents, 9NEWS found the homelessness initiative has already been approved to spend tens of millions beyond what the public was told.

In September of last year, Johnston held two press conferences on the city budget. Johnston projected his "House1000" initiative — now called All In Mile High — would cost a total of $87.8 million from 2023-2024.

But documents show Denver City Council has already approved up to $111 million in expenditures. That’s up to $23 million more than the mayor said it would cost.

More than $65 million was approved to buy or lease four hotels the city has converted into shelters.

More than $30 million was approved to pay providers, such as the Salvation Army, to run the shelters through a series of contracts.

The list is long, and it is linked at the bottom of this article.

"He’s asking us to share in this sacrifice, this financial sacrifice, but on the other hand he is spending as if we are not in a so-called budget crisis," Dr. Lisa Calderón said.

Calderón is a former mayoral candidate who ran against Johnston, gave him a tepid endorsement in the run-off, and has since become a critic of the mayor. She asked why the spending hasn’t stopped for the mayor’s initiative, while budget cuts begin everywhere else.

"We have no real idea about how much money is being spent," Calderón said. "We know what city council says is being spent, we hear the press conferences from the mayor, but we don’t see all of the things that are not openly discussed."

At least one city councilmember, Stacie Gilmore, told 9NEWS she has asked for a budget breakdown of the "House1000" program for months and still doesn’t know how much it costs.

The mayor’s office told 9NEWS on Monday that actual spending in 2023 was around $10.3 million. Most of the expenditures budgeted for 2023 were pushed to 2024. The exact cost of all the bills that will come in this year remains unclear, and though the mayor's office insists the "House1000" and "All In Mile High" initiatives are not over budget, it has not provided a breakdown or how it came to that conclusion.

"Some of the costs anticipated for 2023 will show up in 2024, such as the purchase of the Best Western at 4595 Quebec, which posted to the city’s financial system of record in February 2024. Additionally, the initial 2023 cost estimates included operating costs for hotels and micro-communities for several months of 2023. Because these activities really did not ramp up until November-December 2023, these costs also were much less in 2023 than originally anticipated. We would expect to see these expenses show up in 2024 spending instead," a statement from the mayor's office read in part.

9NEWS asked for a full list and breakdown of the budget for House1000 but did not get that.

So, we came up with those budget projections by going through more than six months of city council documents to try and match the contracts and expenditures to what Johnston has said publicly.

That means what 9NEWS found is not an exhaustive list.

However, the mayor's office points out that when city council approves money, it doesn't mean all of that money is actually spent.

"An important piece to note on this is that the funding source for House 1000/All In Mile High has always largely been federal funding from ARPA and FEMA, paired with some local funding. The federal funding is not tied to a fiscal year so is still available in 2024," the mayor's office wrote in a statement. "One thing to note is that as the program evolves this year, spending in 2024 may change. The program is intended to achieve specific outcomes and the city continues to monitor our strategies to ensure we are achieving those goals. If one strategy is more effective than another, we may evaluate our resources."

Below are all the expenditures, with hyperlinks, 9NEWS found on Denver City Council agendas that add up to more than $111 million in approved expenditures.

Actual: 11/27/23 City Council: Approve $10,090,903 for Salvation Army to manage and provide oversight to 4040 Quebec Street Shelter through 2024

Actual: 12/18/23 City Council: Approve $30,900,000 to purchase 7525 E Hampden Ave

Actual: 12/4/23 City Council: Approve $4,250,000 to purchase Satellite Shelters through 2024

Actual: 12/18/23 City Council: Approve $1,735,985 with Salvation Army for meals at micro-community sites through 2024.

Actual: 11/20/23 City Council: Approve $2,308,929 with Bayaud Enterprises for site operations, management, for micro community in CD8 through 2024.

Actual: 12/4/23 City Council: Approve $2,249,537 with Colorado Village Collaborative for operations and services at CD7 micro-community through 2024.

Actual: 12/4/23 City Council: Approve $1,451,142 with The Gathering Place for site operations, client support for micro communities city wide through 2024.

Actual: 11/20/23 City Council: Approve $850,736 with Colorado Coalition for the Homeless for mental and behavioral health services at micro communities through 2024.

Actual: 11/5/23 City Council: Approve $999,999.96 (83,333.33 per month) lease of 4040 Quebec hotel shelter

Actual: 12/18/23 City Council: Approve $2,074,504 through 6/15/24 for operational and program services at 4849 Bannock shelter in CD9.

Actual: 12/18/23 City Council: Approve $3,100,000 for St Francis Center for operational and program services for 4685 Quebec St Comfort Inn Shelter through 2024

Actual: 12/18/23 City Council: Approve $10,381,000 lease of 4849 Bannock Hotel through 2024.

Actual: Denver buys 4595 Quebec hotel for $25,950,000

Actual: 10/30/23 City Council: Approve $6 million for manufactured sleeping units

Actual: 10/16/23 City Council: Approve $9,166,000 for Salvation Army operations and program management at Best Western 4595 Quebec

For more on this story and other Denver news stories, visit our news partners at 9NEWS.